7. Three bidders have a private valuation drawn from a uniform distribution on [0,30] for a single item. The valuations are 10, 15 and 20 for bidders 1, 2 and 3 respectively. a) What are the bidders' equilibrium strategies in a second price auction? b) Show that for bidder

The owner of a copper mine gets together with all the other copper mine owners and agrees to enter a trust with them. The board of “trustees” for this copper trust then sets the price of copper much higher than they were selling it for before. Is this a vertical integration or a horizontal integration?

Give a detailed explanation of whether the following statements are true or false. • The buyer of an option has an obligation to purchase the underlying asset in the case of a call, or sell in the case of a put, which the seller of an option has the right to deliver in the case of a call, or take delivery in the case of a put. • Call-put parity implies that currency puts and calls written with exercise prices at the forward rate will have different values because, if the foreign interest rate exceeds the domestic rate, the forward rate is at a discount; therefore, the exchange rate is expected to depreciate, making the put more valuable

How is probability is used in inventory management?

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Assume the following scenario Company A Company B Company C (Wants Fixed) (Wants Float) (Wants Float) Fixed 8% Float 7% Amount $1,000,000 7% 8% $500,000 10% 10% $500,000 How much does each company save by engaging in interest rate swaps if we assume each company shares the benefits evenly with their counterparty.

Please don't hand writing suliutio

A new housing development has lots of packed earth and weeds, but no grass. Two neighbors make a wager on who will be the first to have a lush lawn. Mr. Furious knows that a lawn will not grow without grass seed, so he immediately buys the most expensive seed he can find because everyone knows that quality improves with price. Besides, he will recover the cost of the seed through his wager. Next, he stands knee deep in his weeds and tosses the seed around his yard. Confident that he has a headstart on his neighbor, who is not making much visible progress, he begins his next project. Ms. Slo N. Steady, having grown up in the country, proceeds to clear the lot, till the soil, and even alter the slope of the terrain to provide better drainage. She checks the soil’s pH, applies weed killer and fertilizer, and then distributes the grass seed evenly with a spreader. She applies a mulch cover and waters the lawn appropriately. She finishes several days after her neighbor, who asks if she…

Company XYZ, Inc. purchases widgets from a supplier at a cost of $20 per unit and sells the widgets for $30 per unit. By the end of Spring, demand for these widgets subsided considerably and all widgets that weren't sold during the Spring can be sold at a discounted price of $18 per unit. The company estimates demand during quarter two (Q2) to be normally distributed with mu = ? = 10,000 and sigma = ? =1525 boxes What is the optimal stockout probability for company XYZ, Inc.?

4 - Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department stores. The new line would be positioned as a more distinctive brand than the typical glasses sold through department stores, and would be priced higher than other brands in the store, but a lower price line than the current Ray-Ban lines that are sold through more selective stores. In determining the price for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores and about customers' perceptions of those brands. Given Ray-Ban's plan for positioning the new sunglass line, they should use a ____ strategy when introducing their new product.   promotional   penetration   price-skimming   secondary-market